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Fortinet stock rating reiterated at Buy by TD Cowen on strong growth
| USA | economy

Fortinet stock rating reiterated at Buy by TD Cowen on strong growth

#Fortinet #TD Cowen #Buy rating #Cybersecurity #Revenue Growth #SASE #SecOps #Analyst Ratings

📌 Key Takeaways

  • TD Cowen reiterated its Buy rating and $100.00 price target for Fortinet following strong 2025 year-end results.
  • Fortinet reported 20% product revenue growth and 18% billings growth, achieving 'Rule-of-45 performance' for the sixth consecutive year.
  • The company’s SASE and SecOps segments generated 38% of fourth-quarter 2025 billings, showing strong momentum.
  • Fortinet’s fourth-quarter 2025 earnings surpassed analyst expectations, with revenue reaching $1.91 billion.
  • Analysts from UBS and Jefferies raised their price targets for Fortinet to $90, citing strong product growth and billings growth.

📖 Full Retelling

TD Cowen has reiterated its Buy rating and $100.00 price target for Fortinet (NASDAQ:FTNT) following the company's solid 2025 year-end results. The cybersecurity firm reported 20% product revenue growth and 18% billings growth, achieving what TD Cowen describes as 'Rule-of-45 performance' for the sixth consecutive year. This strong performance is supported by Fortinet’s impressive 80.46% gross profit margin and 14.17% overall revenue growth for the last twelve months. The company has reaffirmed its long-term performance targets and provided guidance for 2026, projecting healthy revenue growth of 13% at the midpoint of its forecast range. With a 5-year revenue CAGR of 22%, Fortinet has demonstrated consistent growth, though its current P/E ratio of 32.56 suggests investors are paying a premium for this growth trajectory. The company’s SASE (Secure Access Service Edge) and SecOps (Security Operations) segments combined generated 38% of fourth-quarter 2025 billings and continue to show strong momentum. TD Cowen noted that demand for Fortinet’s products is outweighing the impact of memory ASP (Average Selling Price) increases, supporting the firm’s maintained positive outlook on the stock. In other recent news, Fortinet reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.81, compared to the forecasted $0.74. The company’s revenue also exceeded projections, reaching $1.91 billion against an anticipated $1.86 billion. Despite these positive results, the stock experienced a decline in aftermarket trading. UBS raised its price target for Fortinet to $90 from $80, maintaining a Neutral rating, citing strong product growth and improved Enterprise License Agreement renewal activity. Jefferies also increased its price target for the company to $90 from $80, while keeping a Hold rating, following Fortinet’s impressive 18% year-over-year billings growth, which surpassed the consensus expectation of 12%. These developments reflect a positive outlook from analysts regarding Fortinet’s performance and potential.

🐦 Character Reactions (Tweets)

Tech Guru

Fortinet's stock is up, but my cybersecurity anxiety is still at an all-time high. Maybe I should invest in a panic room instead. #Fortinet #Cybersecurity

Finance Whisperer

Fortinet's P/E ratio is 32.56, but my patience with this stock's aftermarket dip is 0.00. #Fortinet #StockMarket

SASE Enthusiast

Fortinet's SASE segment is booming, but my understanding of it is still in the dark ages. Maybe I should invest in a time machine. #Fortinet #SASE

Earnings Watcher

Fortinet beat earnings expectations, but my expectations for my own bank account are still being soundly defeated. #Fortinet #Earnings

💬 Character Dialogue

Джонні Сільверхенд: Another day, another corporation raking in cash while the rest of us choke on their digital dust. Fortinet’s growth is just a fancy way of saying they’re selling more shackles to the system.
Сквідвард: Oh joy, another stock rating upgrade. Like anyone actually cares about these numbers. I’d rather listen to my neighbor’s terrible clarinet solo than another earnings call.
Джонні Сільверхенд: They’re calling it ‘Rule-of-45 performance’ like it’s some kind of magic. More like ‘Rule-of-45 ways to screw over the little guy.’
Сквідвард: And yet, the stock drops after hours. Even the market knows this is all just a house of cards waiting to collapse. But hey, at least Fortinet’s SASE and SecOps are doing well. Whatever those are.
Джонні Сільверхенд: They’re celebrating 22% CAGR like it’s a victory. Meanwhile, the average Joe’s wages haven’t budged in years. Capitalism at its finest, folks.

🏷️ Themes

Cybersecurity, Financial Performance, Analyst Ratings, Market Trends

📚 Related People & Topics

TD Cowen

American investment bank

TD Cowen (formerly Cowen Inc.), is an American multinational investment bank and financial services division of TD Securities that operates through two business segments: a broker-dealer and an investment management division. The company's broker-dealer division offers investment banking services, ...

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Computer security

Computer security

Protection of computer systems from information disclosure, theft or damage

Computer security (also cyber security, digital security, or information technology (IT) security) is a subdiscipline within the field of information security. It focuses on protecting computer software, systems, and networks from threats that can lead to unauthorized information disclosure, theft o...

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Fortinet

American network security corporation

Fortinet, Inc. is an American cybersecurity company headquartered in Sunnyvale, California. It develops and sells security products including firewalls, endpoint security and intrusion detection systems.

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📄 Original Source Content
TD Cowen has reiterated its Buy rating and $100.00 price target on Fortinet (NASDAQ:FTNT) following the company’s solid 2025 year-end results. This target indicates Fortinet is currently undervalued with significant upside potential from its current price of $78.93. The cybersecurity firm reported 20% product revenue growth and 18% billings growth for the period, achieving what TD Cowen describes as "Rule-of-45 performance" for the sixth consecutive year. This performance is supported by Fortinet’s 80.46% gross profit margin and 14.17% overall revenue growth for the last twelve months. Fortinet has reaffirmed its long-term performance targets and provided guidance for 2026, projecting healthy revenue growth of 13% at the midpoint of its forecast range. With a 5-year revenue CAGR of 22%, the company has demonstrated consistent growth, though its current P/E ratio of 32.56 suggests investors are paying a premium for this growth trajectory. The company’s SASE (Secure Access Service Edge) and SecOps (Security Operations) segments combined generated 38% of fourth-quarter 2025 billings and continue to show strong momentum. TD Cowen noted that demand for Fortinet’s products is outweighing the impact of memory ASP (Average Selling Price) increases, supporting the firm’s maintained positive outlook on the stock. In other recent news, Fortinet reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.81, compared to the forecasted $0.74. The company’s revenue also exceeded projections, reaching $1.91 billion against an anticipated $1.86 billion. Despite these positive results, the stock experienced a decline in aftermarket trading. UBS raised its price target for Fortinet to $90 from $80, maintaining a Neutral rating, citing strong product growth and improved Enterprise License Agreement renewal activity. Jefferies also increased its price target for the company to $90 from $80, while keeping a Hold rating, following Fort...

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